Investing.com - Gold futures traded slightly higher in the early part of Thursday’s Asian session after plunging to a three-year Wednesday in the U.S.
On the Comex division of the New York Mercantile Exchange, gold futures for rose 0.21% to USD1,232.95 per troy ounce in Asian trading Thursday after settling down 3.41% at USD1,231.65 a troy ounce in U.S. trading on Wednesday.
Gold futures were likely to find support at USD1,211.50 a troy ounce, the low from Aug. 24, 2010, and resistance at USD1,300.55, Monday's high.
After an unprecedented 12-year bull market, gold futures have plunged this year as many traders called for the bursting of the yellow metal’s bubble. Gold’s demise has been dramatic that even some U.S. economic news out Wednesday that, in theory, should have helped the yellow metal did not.
In U.S. economic news published Wednesday, the U.S. Commerce Department said U.S. GDP grew 1.8% in the first quarter, well below the previous estimate of 2.4% growth. Growth in consumer spending was slashed to 2.6% from 3.4%. Only the home construction and government readings were not revised downward.
That report sent U.S. stocks soaring on speculation it was enough to prevent the Federal Reserve from immediately tapering its USD85 billion-a-month easing program. The presumed end of quantitative easing has been giving the U.S. dollar strength while plaguing dollar-denominated commodities such as gold.
Still, mere speculation that the Fed will not move to taper in the near-term was not enough to support gold or silver. Traders now view declines in the precious metals as breeding more declines and massive withdrawals from exchange-traded products such as the SPDR Gold Shares and iShares Silver Trust are believed to be making matters worse for futures prices.
Elsewhere, Comex silver for July delivery inched down 0.01% to USD18.612 per ounce while copper for July delivery rose 0.30% to USD3.052 per ounce.
On the Comex division of the New York Mercantile Exchange, gold futures for rose 0.21% to USD1,232.95 per troy ounce in Asian trading Thursday after settling down 3.41% at USD1,231.65 a troy ounce in U.S. trading on Wednesday.
Gold futures were likely to find support at USD1,211.50 a troy ounce, the low from Aug. 24, 2010, and resistance at USD1,300.55, Monday's high.
After an unprecedented 12-year bull market, gold futures have plunged this year as many traders called for the bursting of the yellow metal’s bubble. Gold’s demise has been dramatic that even some U.S. economic news out Wednesday that, in theory, should have helped the yellow metal did not.
In U.S. economic news published Wednesday, the U.S. Commerce Department said U.S. GDP grew 1.8% in the first quarter, well below the previous estimate of 2.4% growth. Growth in consumer spending was slashed to 2.6% from 3.4%. Only the home construction and government readings were not revised downward.
That report sent U.S. stocks soaring on speculation it was enough to prevent the Federal Reserve from immediately tapering its USD85 billion-a-month easing program. The presumed end of quantitative easing has been giving the U.S. dollar strength while plaguing dollar-denominated commodities such as gold.
Still, mere speculation that the Fed will not move to taper in the near-term was not enough to support gold or silver. Traders now view declines in the precious metals as breeding more declines and massive withdrawals from exchange-traded products such as the SPDR Gold Shares and iShares Silver Trust are believed to be making matters worse for futures prices.
Elsewhere, Comex silver for July delivery inched down 0.01% to USD18.612 per ounce while copper for July delivery rose 0.30% to USD3.052 per ounce.